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The term stock market refers to several exchanges where shares of publicly traded companies can be bought and sold. Such financial activities are carried out through formal exchanges and over-the-counter (OTC) marketplaces that follow the rules.

The terms “stock exchange” and “stock market” are frequently used interchangeably. Stock market traders buy and sell shares on one or more of the stock exchanges that comprise the overall stock market.

The New York Stock Exchange (NYSE) and the Nasdaq are the two most important stock exchanges in the United States.

The Dow Jones Industrial Average or the Standard & Poor’s 500 are two popular stock market indices frequently mentioned when the term “stock market” is used in everyday speech. These represent large portions of the stock market. The performance of the indexes is indicative of the entire market because it is difficult to keep track of every single company.

According to a news headline, the stock market may have declined, or the stock market may have closed the day up or down. Most frequently, this indicates that stock market indexes have moved up or down, indicating that the value of the index’s component stocks has increased or decreased. By purchasing and selling stocks, investors anticipate making money.

Also Read | For stock trading SEBI plans to implement new payment mechanism

What drives the market?




The term stock market refers to several exchanges where shares of publicly traded companies can be bought and sold. Such financial activities are carried out through formal exchanges and over-the-counter (OTC) marketplaces that follow the rules.

The terms “stock exchange” and “stock market” are frequently used interchangeably. Stock market traders buy and sell shares on one or more of the stock exchanges that comprise the overall stock market.

The New York Stock Exchange (NYSE) and the Nasdaq are the two most important stock exchanges in the United States.